Editorial Commentary

A Labor Day Lament

Economic growth comes from investment, not from boosting wage rates.

As the summer comes to a close, it seems that almost every politician and economic analyst with close ties to the government has been grumbling about the way the number of jobs and the wages paid are not keeping up with growth in gross domestic product. The complaints grew louder in the past few weeks, perhaps in recognition that Labor Day was coming.

President Barack Obama provided eloquent grumbles in his speeches on the economy in July and August. "This growing inequality isn't just morally wrong; it's bad...